This has been a blockbuster year for state earned income tax credits (EITCs) — one of the most common-sense tools we have for helping low-income workers make ends meet. Three state legislatures adopted new EITCs in 2017, three expanded existing credits, and two took important steps to increase access to the credit. All told, 29 states and the District of Columbia now have their own EITCs (see map).
Here are the big wins from 2017:
These state EITC gains will help ensure more broadly shared prosperity. State EITCs — alongside raises in the minimum wage — help families struggling on low wages afford the necessities, keep working, and meet their children’s needs. The credits also benefit local businesses because those getting the credit spend nearly every dollar they earn in their communities.